Sacramento Real Estate Market Update – January 2024

Hello everyone. Welcome back to Next Real Estate Group. Today, we have your first Sacramento real estate market update for 2024. What a difference a month makes in the market making positive shifts, right? First up, let’s talk about the new home market. New home sales in the Greater Sacramento area started off with a bang in January, fueled by continued strong demand, a scarcity of existing homes for sale, and declining mortgage interest rates. That’s all according to the North State BIA, North State Building Industry Association’s report that came out yesterday.

New Home Market

Our new home division started seeing increased search traffic back in December. And we saw a huge jump in physical traffic as well as sales volume in all of our communities in January. Now, overall in the Sacramento market for new homes, there were 580 new homes sold in January, which is 40 % higher than in December, 32 % higher than January of 23 and 28 % higher than January on an average January. 45 % of those sales were in Sac County 36 % were in Placer County. Roseville saw the highest number of sales in any sub market with 147, followed by Elk Grove, Sacramento, Ranch Cordova, and Lincoln. Next, let’s talk about the average home price in Sacramento.

Average Prices

Based on data from Trend Vision, the average home price for January was $571 ,000. It’s a slight decrease compared to last month, but it’s still an increase of 4 .4 % from January of 2023. The average price per square foot in Sacramento was $306. That’s a decrease of 1 % compared to December, but up 4 .8 % from this same period last year. We keep seeing these consistent improvements.

Homes Sold

In January, a total of 1 ,780 homes were sold. That’s a decrease of 11 .7 % from December, but it’s up 15 .4 % from the same time last year. The bigger news, however, is pending sales for January. This was up 35 .3 % from December and that’s up 15 .8 % from this time last year. That’s a big tell of how active the January market was and how busy February will continue to be. We will see that closed sales volume start to hit in February with more big spikes in it in quantity. Now we currently have two months of inventory. That’s the same as last month and it’s down from 2 .7 months the same time last year. So again, we’re seeing this compression of inventory, which also starts to equate into increased sales, increased pricing. That’s going on throughout the entire Sacramento region. There’s some pockets that are here and there. Basically what’s happening is that if you are priced right, you are selling very quickly in this market. If you are not priced right, or let me clarify, if you’re the seller that had to have that just dream price and you’re wondering why your home is sitting and the heart.

Summary

The markets this hot. It’s probably price guys. Mark interest rates are continuing to work in our favor. They’re still hanging around in this mid six range with some fluctuation up and down over the last couple of weeks based on more on sentiment than actual fundamentals in the market. General consensus is the feds going to reduce the federal funds rates another three times in 24. Not really sure how valid that’s really going to be as we go into later part of this year, especially given our most recent jobs market numbers, which were very strong. Uh, guys, overall 2024 is off to a very strong start. We’ve kicked off six weeks earlier than the traditional weekend, which is the weekend after Superbowl, which is this Sunday. We had a lot of conversations with buyers coming back into our new home communities that are ready to buy after they’ve been sitting on the fence for the past year. Sadly, they all want the deal that we were offering several months ago, but those deals are no longer available.

If you’re a buyer, it’s a good time to buy, but you’ve got a lot more competition for new homes and for used homes right now. If you’re an agent, you already know how busy it is. Take the time to inform your clients about how much we’ve seen the market shift in the past month. Take advantage of it. Move quickly, move smartly. Our job is to improve your life. Whether it’s buying or selling a home today, we’re in your corner. If you’re an agent looking to grow your business, I want to talk to you and let’s see how we can help you grow together. Please make sure and like this video, subscribe, hit the notification bell whenever you, so you never miss a market update.

Guys, I’m Christopher Brown with Next Real Estate Group and Next New Homes Group. We’ll see you next month.